Spatial Cournot competition and agglomeration in a model of location choice

Spatial prices, search behavior and location

“…This literature typically focuses on the behavior of producers in a spatial context. Most of it deals with pricing strategies and optimal production plans (recently Gupta et al 1997;Lindsey and West 1997;Tan 2001;Zhang and Sexton 2001;Ohta et al 2005, for empirical applications see Nero 1998Alvarez et al 2000). As a consequence, it is common in this literature to model the consumer behavior in a very simple form as price takers at fixed locations.…”

Intermediate goods and the location of productive activity

“…In this framework, the region with better access to global demand is the larger region in terms of the number of consumers. Gupta et al (1997) generalize this result to a situation with several firms and a continuous and bounded linear space where the distribution is nonuniform. They concluded that, in this case, the firms agglomerate at a central point of the spatial distribution of consumers if the unit transport cost is low enough in relation to the density of consumers at that point.…”

Unusual Spatial Patterns of Industrial Firm Locations Uncover their Social Interactions

“…Generalizations to non-uniform spread of customers were also studied [9], and yet the sellers generate a similar market splitting response to competition, under more restrictive setups.…”